June 15 question 1

This topic has 5 replies, 2 voices, and was last updated 9 years ago by John Moffat.

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August 19, 2016 at 6:01 pm #334114
6shahir
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How do u calculate the contribution to Imoni CO?
August 20, 2016 at 6:28 am #334151
John Moffat
Keymaster
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They currently earn a contribution of 40 on a selling price of 200, so the variable cost is 160.
They will increase the selling price to 280, and so the contribution will be 280 – 160 = 120.
August 20, 2016 at 9:23 am #334172
6shahir
Member
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yes, but how do u get 18540 for the first year?
August 20, 2016 at 12:29 pm #334205
John Moffat
Keymaster
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150 x $120 plus 3% inflation.
August 20, 2016 at 1:53 pm #334218
6shahir
Member
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thnks alot I understood 🙂
August 21, 2016 at 5:30 am #334294
John Moffat
Keymaster
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You are welcome 🙂
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